EX-99.1 2 a4955749ex99.txt EXHIBIT 99.1 PRESS RELEASE Exhibit 99.1 DeVry Inc. Reports Fiscal 2005 Fourth Quarter, Year-End Results, Summer Enrollment; DeVry University New Undergraduate Students Increased 7.3 Percent OAKBROOK TERRACE, Ill.--(BUSINESS WIRE)--Aug. 18, 2005--DeVry Inc. (NYSE:DV), an international higher education company, today reported financial results for the fiscal 2005 fourth quarter and year-end, and 2005 summer enrollment. Revenues for the fourth quarter were $196.5 million, compared with $200 million for the same quarter one year ago. For the full-year ended June 30, 2005, revenues were $781.3 million, compared to $784.9 million last year. Net income for the quarter totaled $6.4 million, or $0.09 per fully diluted share, compared with $15.7 million, or $0.22 per fully diluted share, for the same period last year. The fiscal 2005 fourth quarter includes approximately $1.5 million in pre-tax charges related to the proposed sale of a facility in the Denver area and $3.3 million for costs related to workforce reductions in the fourth quarter of fiscal 2005. For the full-year, net income was $28.5 million or $0.40 per share. "Although financial results in fiscal 2005 were lower than the previous year, we have established a strong foundation for improved results in fiscal 2006 and beyond," said Ronald L. Taylor, DeVry's chief executive officer. "Positive new student enrollment in spring and summer at DeVry University is very encouraging and reflects solid implementation of our growth plan. We remain optimistic about the growth prospects open to us within the areas of business, technology and healthcare." At DeVry University, new undergraduate student enrollment in summer 2005 increased 7.3 percent to 11,293 students, compared to 10,522 in summer 2004. Total undergraduate student enrollment in summer 2005 was 36,220 students, or 4.8 percent lower compared to 38,036 students in the prior year, as a result of previous enrollment shortfalls. For the May 2005 session, the total number of coursetakers at Keller Graduate School of Management increased 8.7 percent to 12,113 coursetakers compared to 11,140 in the prior year. In the July 2005 session, coursetakers increased 11.3 percent to 11,434 from 10,276 coursetakers in July 2004. The total number of online undergraduate and graduate coursetakers for summer 2005, included in the enrollment figures above, increased 67.3 percent to 21,068, compared to 12,590 last year. The total number of students enrolled at Ross University for the May 2005 term declined 8.5 percent to 3,029, compared to 3,310 last year. The decrease in enrollments is a result of higher standards in Ross University's admission criteria and academic progress requirements, which affected both new student recruiting and student retention. The company expects new student enrollment at Ross to improve during fiscal 2006 as a result of a reallocation of marketing and recruiting resources. During fiscal 2005, nearly 40,000 students enrolled in Becker Professional Review exam preparation courses. Becker posted record revenue of almost $44 million for the 2005 fiscal year. "We are fully engaged in implementing our five-point plan to return to historical growth in enrollment and to increase operational efficiency," said Daniel Hamburger, president and chief operating officer. "While we have seen improvement in many areas, there is still progress to be made in recruiting full-time day students at DeVry University and in growing enrollments at Ross University." DeVry Inc. will hold a conference call to discuss its fiscal 2005 fourth quarter and year-end results on August 18, 2005 at 3:30 p.m. Central Time (4:30 p.m. Eastern Time). The conference call will be led by Ronald Taylor, chief executive officer; Daniel Hamburger, president and chief operating officer and Norman Levine, senior vice president and chief financial officer. For those wishing to participate by telephone, dial 800-240-5318 (domestic) or 303-262-2140 (international). DeVry Inc. will also broadcast the conference call live via the Internet. Interested parties may access the webcast through the Investor Relations section of the company's Web site at http://www.shareholder.com/devry/medialist.cfm. Please access the Web site at least 15 minutes prior to the start of the call to register, download and install any necessary audio software. The company will archive a telephone replay of the call until September 1, 2005. To access the replay, dial 800-405-2236 (domestic) or 303-590-3000 (international), enter the passcode 11036783 or to access the webcast replay, please visit http://www.shareholder.com/devry/medialist.cfm. DeVry Inc. (NYSE:DV) is the holding company for DeVry University, Ross University, Deaconess College of Nursing and Becker Professional Review. DeVry University, which includes Keller Graduate School of Management, offers associate, bachelor's and master's degree programs in technology, business and management. Ross University, through its schools of Medicine and Veterinary Medicine, offers both doctor of medicine and doctor of veterinary medicine degree programs. Deaconess College of Nursing offers associate and bachelor's degree programs in nursing. Becker Professional Review, which includes Stalla CFA Review, provides preparatory coursework for the certified public accountant and chartered financial analyst exams. DeVry Inc. is based in Oakbrook Terrace, Ill. For more information about the company, visit http://www.devryinc.com. Summer 2005 Enrollment Results ------------------------------- DeVry University Summer 2005 Summer 2004 Increase/ (Decrease) New undergraduate students (onsite/online) 11,293 10,522 7.3% Total undergraduate students (onsite/online) 36,220 38,036 (4.8%) July 2005 July 2004 Increase/ (Decrease) Graduate coursetakers (onsite/online) 11,434 10,276 11.3% Online coursetakers(a) 21,068 12,590 67.3% May 2005 May 2004 Increase/ (Decrease) Graduate coursetakers (onsite/online) 12,113 11,140 8.7% Ross University 3,029 3,310 (8.5%) (a)Online coursetakers are included in the new and total undergraduate student and graduate coursetaker counts. Certain statements contained in this release, including those that affect DeVry's expectations or plans, may constitute forward-looking statements pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Such statements are subject to risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Potential risks and uncertainties include, but are not limited to, market conditions, dependence on student financial aid, state and provincial approval and licensing requirements, and the other factors detailed in the company's Securities and Exchange Commission filings. DeVry Inc. Fourth Quarter Ended June 30: -------------------------------- Fiscal Year Fiscal Year 2005 2004 -------------------------------------- Revenues $196,456,000 $200,043,000 Net Income 6,441,000 15,696,000 Earnings Per Common Share Basic $0.09 $0.22 Diluted $0.09 $0.22 Number of Common Shares Basic 70,442,000 70,306,000 Diluted 70,660,000 70,926,000 Fiscal Year Ended June 30: ---------------------------- Fiscal Year Fiscal Year 2005 2004 ------------------------------------- Revenues $781,304,000 $784,885,000 Income Before Cumulative Effect of Change in Accounting 26,734,000 58,061,000 Net Income 28,544,000 58,061,000 Earnings Per Common Share Basic: Income Before Cumulative Effect of Change in Accounting $0.38 $0.83 Net Income $0.41 $0.83 Diluted: Income Before Cumulative Effect of Change in Accounting $0.38 $0.82 Net Income $0.40 $0.82 Number of Common Shares Basic 70,383,000 70,142,000 Diluted 70,591,000 70,757,000 June 30: ---------- Actual Shares Outstanding 70,475,000 70,331,000 DEVRY INC. CONSOLIDATED BALANCE SHEETS (Dollars in Thousands) ----------- PRELIMINARY June 30, -------------------- 2005 2004 --------- --------- ASSETS: Current Assets: --------------- Cash and Cash Equivalents $161,823 $146,227 Restricted Cash 13,935 13,457 Accounts Receivable, Net 39,226 28,150 Inventories 164 3,281 Deferred Income Taxes 17,142 7,619 Prepaid Expenses and Other 10,048 10,141 --------- --------- Total Current Assets 242,338 208,875 --------- --------- Land, Buildings and Equipment: ------------------------------ Land 68,013 64,256 Buildings 212,428 203,651 Equipment 234,201 222,898 Construction In Progress 15,813 6,214 --------- --------- 530,455 497,019 Accumulated Depreciation and Amortization (243,688) (210,132) --------- --------- Land, Buildings and Equipment, Net 286,767 286,887 --------- --------- Other Assets: ------------- Intangible Assets, Net 73,699 86,346 Goodwill 289,308 284,397 Perkins Program Fund, Net 13,290 12,247 Other Assets 4,633 5,380 --------- --------- Total Other Assets 380,930 388,370 --------- --------- TOTAL ASSETS $910,035 $884,132 ========= ========= DEVRY INC. CONSOLIDATED BALANCE SHEETS (Dollars in Thousands) ----------- PRELIMINARY June 30, -------------------- 2005 2004 --------- --------- LIABILITIES: Current Liabilities: -------------------- Current Portion of Revolving Loan $50,000 $35,000 Accounts Payable 30,681 27,349 Accrued Salaries, Wages and Benefits 34,071 31,041 Accrued Expenses 34,527 24,610 Advance Tuition Payments 14,685 16,819 Deferred Tuition Revenue 22,823 21,830 --------- --------- Total Current Liabilities 186,787 156,649 --------- --------- Other Liabilities ----------------- Revolving Loan 50,000 90,000 Senior Debt 125,000 125,000 Deferred Income Taxes 21,343 17,660 Accrued Employment Agreements 6,352 3,679 Deferred Rent and Other 12,629 12,887 --------- --------- Total Other Liabilities 215,324 249,226 --------- --------- TOTAL LIABILITIES 402,111 405,875 --------- --------- SHAREHOLDERS' EQUITY: Common Stock, $0.01 Par Value, 200,000,000 Shares Authorized; 70,475,000 and 70,331,000 Shares Outstanding at June 30, 2005 and 2004, Respectively 706 704 Additional Paid-in Capital 73,372 71,797 Retained Earnings 433,580 405,036 Accumulated Other Comprehensive Income 266 720 --------- --------- TOTAL SHAREHOLDERS' EQUITY 507,924 478,257 --------- --------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $910,035 $884,132 ========= ========= DEVRY INC. CONSOLIDATED STATEMENTS OF INCOME --------------------------------- (Dollars in Thousands Except for Per Share Amounts) PRELIMINARY For The Quarter For The Year Ended June 30, Ended June 30, ------------------- ------------------- 2005 2004 2005 2004 --------- --------- --------- --------- REVENUES: Tuition $184,308 $186,993 $737,132 $737,546 Other Educational 11,799 13,032 43,530 47,173 Interest 349 18 642 166 --------- --------- --------- --------- Total Revenues 196,456 200,043 781,304 784,885 --------- --------- --------- --------- COSTS AND EXPENSES: Cost of Educational Services 109,019 105,909 437,345 420,108 Student Services and Administrative Expense 76,422 70,437 300,165 275,587 Interest Expense 2,656 1,821 9,047 7,834 --------- --------- --------- --------- Total Costs and Expenses 188,097 178,167 746,557 703,529 --------- --------- --------- --------- Income Before Income Taxes and Cumulative Effect of Change in Accounting 8,359 21,876 34,747 81,356 Income Tax Provision 1,918 6,180 8,013 23,295 --------- --------- --------- --------- Income Before Cumulative Effect of Change in Accounting 6,441 15,696 26,734 58,061 Cumulative Effect of Change in Accounting, Net of Tax - - 1,810 - --------- --------- --------- --------- NET INCOME $6,441 $15,696 $28,544 $58,061 ========= ========= ========= ========= EARNINGS PER COMMON SHARE Basic Income Before Cumulative Effect of Change in Accounting $0.09 $0.22 $0.38 $0.83 Cumulative Effect of Change in Accounting - - 0.03 - --------- --------- --------- --------- Net Income $0.09 $0.22 $0.41 $0.83 ========= ========= ========= ========= Diluted Income Before Cumulative Effect of Change in Accounting $0.09 $0.22 $0.38 $0.82 Cumulative Effect of Change in Accounting - - 0.02 - --------- --------- --------- --------- Net Income $0.09 $0.22 $0.40 $0.82 ========= ========= ========= ========= DEVRY INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in Thousands) ----------- PRELIMINARY For The Year Ended June 30, ----------------------------- 2005 2004 2003 --------- --------- --------- CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $28,544 $58,061 $61,148 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation 42,353 40,836 37,758 Amortization 15,213 14,748 2,574 Provision for Refunds and Uncollectible Accounts 43,521 35,495 34,501 Deferred Income Taxes (5,840) 5,470 8,940 Loss on Disposals of Land, Buildings and Equipment 803 439 263 Changes in Assets and Liabilities, Net of Effects from Acquisitions of Businesses: Restricted Cash (412) 595 6,206 Accounts Receivable (54,267) (39,340) (23,633) Inventories 3,131 1,034 592 Prepaid Expenses And Other 2,153 (3,153) (3,070) Perkins Program Fund Contribution and Other (764) 654 (1,114) Accounts Payable 2,852 8,483 (2,132) Accrued Salaries, Wages, Expenses and Benefits 12,530 (685) 2,061 Advance Tuition Payments (2,299) 6,251 (6,997) Deferred Tuition Revenue 40 5,539 (16,904) --------- --------- --------- NET CASH PROVIDED BY OPERATING ACTIVITIES 87,558 134,427 100,193 --------- --------- --------- CASH FLOWS FROM INVESTING ACTIVITIES: Capital Expenditures (42,909) (42,808) (43,762) Payments for Purchases of Businesses, Net of Cash Acquired (4,861) (1,493) (295,908) --------- --------- --------- NET CASH USED IN INVESTING ACTIVITIES (47,770) (44,301) (339,670) --------- --------- --------- CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from Exercise of Stock Options 1,091 2,631 404 Proceeds from Revolving Credit Facility 45,000 25,000 165,000 Repayments Under Revolving Credit Facility (70,000) (65,000) - Proceeds from Senior Note Issuance - - 125,000 --------- --------- --------- NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES (23,909) (37,369) 290,404 --------- --------- --------- Effects of Exchange Rate Differences (283) (1) 29 --------- --------- --------- NET INCREASE IN CASH AND CASH EQUIVALENTS 15,596 52,756 50,956 Cash and Cash Equivalents at Beginning of Year 146,227 93,471 42,515 --------- --------- --------- Cash and Cash Equivalents at End of Year $161,823 $146,227 $93,471 ========= ========= ========= SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Interest Paid During the Year $7,063 $7,091 $662 Income Taxes Paid During the Year, Net 7,450 22,471 17,373 CONTACT: DeVry Inc. Joan Bates (Investor), 630-574-1949 or Dresner Corporate Services Sarah Komuniecki (Media), 312-780-7208